“As an investor you have to ask yourself, is this company doing too many things?”
— Scott Devitt, analyst at research firm Stifel Financial, on Amazon. Fast Company takes a look at the failure of the Fire Phone, as well as the state of Amazon, which is led by the ambitious and headstrong Jeff Bezos. What emerges from interviews with analysts, former and current Amazon employees and other observers: The company continues to make big bets while it continues to lose money, and critics are questioning what Bezos is doing.
“For years, the story has been that Amazon isn’t profitable because it is growing so fast,” David Einhorn, hedge fund manager, wrote in a note to Greenlight Capital investors. “Now growth is slowing, but rather than unleashing higher profits, the slower growth is leading to even greater losses.” (Amazon in October reported a $437 million quarterly loss, its biggest in 14 years.)
Fast Company lists Amazon’s many offerings. Online retail, of course. But also: grocery delivery, original TV shows, its own line of diapers, and more. And last year it bought Twitch, which allows users to watch people play video games, for almost $1 billion.
So what’s next for the multi-tentacled company? Probably more of the same. Last month, Bezos said he’s not done spending money on the Fire Phone, that it’ll take more time to get it right.
Photo of the Amazon Fire Phone by Ted Warren/Associated Press